Question

why is crypto going up 

All three of the major indices were up in afternoon trading while bond yields and the dollar, traditional safe havens during inflation, dropped. This move gave momentum to cryptocurrencies like Bitcoin as well, which have been trading in tandem with the broader markets throughout most of 2022.

By Wednesday morning, however, investor sentiment appeared to shift once again for the broader markets. The S&P 500 and Nasdaq Composite were down by more than 0.2% and 1%, respectively, Wednesday morning, and the Dow was up less than 0.5%.

Most investors still believe the FOMC will raise rates next month. According to the CME Group’s FedWatch tool, market observers foresee a 91.3% chance of a 75 basis points (bps) rate hike.

This means that there could still be many more ups and downs for Bitcoin and crypto in the interim.

Answer 1

On the other hand, according to the Kraken report, Ethereum’s volatility started the month significantly higher at 89%. Still, it dropped to 78% by the end of the month, with its own spike of 94% on Sept. 17, just a few days after the “merge.”

The Ethereum merge is the platform’s shift from a proof of work network to a proof of stake network.

However, even with this lower volatility, Bitcoin is still notorious for sudden jumps. Given that the financial climate remains extremely unpredictable, leaving investors on edge, there is no guarantee that what we are experiencing will stay, even if the worst of the past year won’t return.